Blue Wing Shoes is a company that produces high quality footwear....

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Blue Wing Shoes is a company that produces high quality footwear. Its most popular item, the Foot Tractor, is a high quality work boot that offers workers the protection they need to avoid injury combined with the comfort of sneakers. Each pair of Foot Tractors costs $78 to produce ($61 variable, $17 fixed) and is normally sold for $180. A large mining company, Big Time Mine Co., recently lost a substantial lawsuit involving an employee who was injured due to wearing the wrong type of footwear. To prevent a repeat of this issue and to otherwise help employees with the high cost of quality work boots, Big Time decides that it will start providing its employees' work boots as part of their standard-issue uniform. Big Time contacts Blue Wing offers to purchase 4,000 pairs of Foot Tractors for its employees at a price of $75 per pair with the caveat that the boots must be waterproof. Blue Wing calculates that adding a waterproof membrane to each pair of Foot Tractors would increase its variable costs by $8 per pair of boots. Assuming Blue Wing has excess operating capacity, fill in the blanks below to compare the two alternatives, and indicate the net income (loss) that Blue Wing would realize in either scenario. Enter answers as whole numbers with no dollar signs, and enter all amounts as positive numbers unless there is a net loss in the bottom row. If there is a net loss, enter this amount as a negative number by adding a minus sign (-) immediately before the amount with no spaces. Enter Os where applicable (no blanks!). Accept Order Reject Order %24 Revenues %24 %24 Costs - Variable Manufacturing %24 Net Income Should Blue Wing Shoes accept or reject the special order? If you believe it should accept it, enter "Accept" in the box below without quotation marks. If you believe it should reject it, enter "Reject" in the box below without quotation marks

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